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D77/100FDD 2022

Renew Crew — Litigation & Risk

Cleaning - Commercial & Janitorial · FDD Items 3, 4 & 5

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Elevated Risk

8 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
8
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
77 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
5
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$643K
Avg loan size
$129K
Participating lenders
4

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
No
Franchisor can match any purchase offer when you try to sell
Governing law
Virginia
State whose law governs disputes — relevant if you're not based there

What drove the 77/100 rating

Risk Score Breakdown

  1. 01MEDUnit count declined 29.2% YoY (17 units) — significant system contraction signals serious franchisee dissatisfaction or performance issues
  2. 02HIGHMulti-state litigation involving CEO and affiliate brand alleging fraud, misrepresentation, and franchise law violations — indicates potential systemic compliance and ethical problems
  3. 03MEDNo Item 19 (average net income) disclosed — inability or unwillingness to provide profitability data is a major transparency red flag
  4. 04HIGHGoing Concern status is FALSE — suggests financial instability at corporate level that could impact franchisee support
  5. 05MEDRoyalty floor of $150/week ($7,800/year) on average revenue of $350K creates 2.2% minimum burden even if sales decline
  6. 06MINORHigh unit attrition despite protected territory indicates fundamental business model or support problems, not market competition

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.